Minimum energy efficiency standards for rental properties

2024-01-01

Landlord and agent compliance with the disclosure and upgrade obligations appears high under the ACT’s newly introduced minimum energy efficiency standard for rental properties, with no observable impacts on rental property prices, volumes or distributional impacts. Common Capital was engaged by the ACT Environment, Planning and Sustainable Development Directorate to monitor and evaluate the standard’s implementation processes and assess early indicators of policy objectives and potential unintended outcomes.

Key takeaways

58%-60% of disclosing homes report already meeting the minimum standard for ceiling insulation, ahead of the 9-month transitional period.
More than 85% of landlords and agents have complied with their disclosure obligations in the first 12 months.
The number of insulation upgrades undertaken since the introduction of the standard was ~60% greater than the number of reported non-compliant priorities that were forecast to comply at the time of analysis.
A difference-in-difference analysis was used to separate the cyclical nature of price fluctuations which indicated that the likelihood that any price changes could be attributed to the standard is very low.

Minimum energy efficiency standards for rental properties

Key takeaways

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